Reduced 5% VAT Rate — Which products and services?
The reduced 5% VAT rate applies to certain goods and services deemed basic necessities. The standard rate is 18%, but the legislator provides a lower rate to protect citizens.
Definition
Details
The 5% rate applies to: bread and basic food products, medicines, medical devices, books and textbooks, public passenger transport, residential property up to 60m², computer equipment for education. The list is defined in the VAT Law.
Example
You issue an invoice for textbook sales: 10,000 MKD + 5% VAT = 10,500 MKD (instead of 11,800 MKD at 18%).